Glossary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
Act of God An event, which is not the fault of any individual. Acts of God may or may not be insura...
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Actuary A professional qualified to apply principles to solving financial problems, normally in con...
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Additional Voluntary Contributions Additional contributions made by pension scheme members to top u...
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Agent Someone who acts for one or a number of companies, particularly in selling insurance.
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All Risks Wider cover than given under a normal property insurance policy. Covers any loss or damag...
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Average A policy condition requiring the amount of a claim payment to be reduced proportionately if...
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B
Betterment The principle by which the insured makes a payment towards the cost of the claim because...
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Broker A company registered with the Insurance Brokers Registration Council (IBRC) under the Insura...
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Buildings Insurance This is a policy covering the structure of a building against a number of diffe...
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Business Interruption You can find the interpretation of this under consequential loss.
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C
Capacity Every insurer has a limit on the amount on new business it can write. The FSA looks at a c...
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Certificate This is the document issued by insurers as evidence that insurance is in force.
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Certificate of Insurance
This is a document proving you have valid car insurance in the UK.
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Claim When a policyholder seeks payment or settlement for a loss they have suffered under the terms...
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Co-Insurance This is an arrangement whereby a number of insurance companies share in the cover of o...
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Commercial Business An insurance policy taken out by a company, partnership or organisation to cove...
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Commission Monies paid by an insurance company to a broker/ independent intermediary/agent for sell...
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Comprehensive Cover
The most expensive cover available but covers your property as well as a t...
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Comprehensive Insurance A policy which covers a number of types of loss or damage mainly in motor i...
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Condition This is part of an insurance policy stating that certain rules must be followed, for exam...
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Consequential Loss This is insurance covering the loss of profits of a business resulting from an i...
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Contents Policy This is an insurance policy covering the contents of a home or building against a n...
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Contribution The principle of contribution applies where a risk is insured twice or more, for examp...
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Cover Note This is an insurance document giving temporary evidence of cover while the policy and ce...
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Critical Illness Insurance These policies pays out a lump sum on the diagnosis of certain life-thre...
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D
Direct Sources of Insurance Business Insurance transacted where no intermediary is involved, includ...
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E
Endorsement This is a written amendment to an insurance policy that becomes a legal part of the ins...
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Ex Gratia Payment Any payment made by an insurance company that is not strictly necessary, under th...
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Excess This is an amount of money that the policyholder has to pay towards the cost of a claim. The...
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Excess
This is the amount you pay when you have to make a claim. Typically young drivers car ...
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Excess of Loss Policy This is a special excess policy which covers claims costs exceeding an amount...
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Exclusion This is a specified property, person or event that the insurance policy does not cover. M...
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G
General Insurance This refers to the insurance of risks where the policy offers cover for a limited...
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General Liability This cover protects the policyholder's legal liability for injury, property damag...
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Green Card This is a document issued to policyholders motoring abroad as evidence that they have th...
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I
Indemnity The insurance principle by which policyholders are put in the same financial position aft...
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Insurable Interest A principle of insurance which states that someone may only take out cover if th...
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Insurance A financial service offering financial compensation for something that may or may not hap...
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Insurance Company A company that takes on risk within the insurance policies it sells in return for...
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Insurance Premium Tax A UK governement tax imposed on most non-life insurance premiums.
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Insured The individual covered by an insurance policy.
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Intermediary This is the person or organisation that offers advice and arranges policies for client...
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K
Knock-for-Knock An agreement whereby each motor insurer agrees to pay for damage to its policyholde...
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L
Legal Expenses Insurance Often referred to as uninsured loss recovery services for car insurance. C...
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Liability This is the legal responsibility for causing loss to someone else by injuring him or her ...
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Lloyd's Members Individuals on whose behalf Lloyd's policies are issued. They pledge all their pers...
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Lloyd's of London An insurance market organised into syndicates, which underwrites most types of po...
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Loading This describes the extent to which an individual is charged more than the "average&quo...
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Loss Adjuster A individual who is independent of an insurance company but engaged and paid by it, w...
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Loss Assessor This is an individual acting on behalf of policyholders in assessing claims.
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M
Mechanical Breakdown Insurance This cover protects against the cost of breakdowns of household appl...
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Motor Insurance This insurance covers legal liabilities arising from the use of a motor vehicle. Co...
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Mutual An insurance company that is owned by its policy holders.
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N
New-For-Old Cover for property where an item lost or destroyed would be replaced with a brand new o...
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No Claim Discount (or Bonus) A reduction in a renewal premium to reflect a claim-free record; used ...
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No Claims Bonus (NCB)
This is usually measured in years. It is how many years you have held ca...
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P
Personal Lines of Business This refers to any insurance policy taken out by an individual in his/he...
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Policy The insurance document providing full details of the contract between the insurer and the po...
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Policyholder This is the person to which the insurer issues the policy. It normally also means the ...
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Premium The amount paid by the policyholder for insurance.
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Proposal Form This is an application for insurance cover.
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Proposer This is the person or company who applies to take out insurance.
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Protected NCB
If you have over 4 years NCB(see below) you can protect it which allows you to m...
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R
Rate The price of insurance, usually expressed as the cost per unit of cover, e.g. £x per &po...
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Renewal Notice An insurance notice sent to the policyholder inviting him/her to renew a policy for ...
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S
Subrogation The right of an insurer who has indemnified a policyholder to take over any legal right...
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Sum Insured The amount for which property is insured, and the maximum amount which the insurance co...
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Syndicate This refers to a group of underwriters at Lloyd's.
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T
Third Party A party involved in a claim who is neither the policyholder nor the insurer.
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Third Party Cover Quote
This level of insurance only covers other peoples property, none of yo...
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Third Party Fire & Theft
This covers you against fire, theft and damage to third parties p...
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Trading Result An insurer's overall profit/loss calculated as the underwriting result plus investme...
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U
Underinsurance When the sum insured is not enough to cover the maximum possible loss or damage. Und...
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Underwriter This is the person who decides whether to accept a risk and calculates a premium to be ...
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Utmost Good Faith This refers to the principle of insurance that requires a proposer to give all re...
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W
Write-Off A damaged car or vehicle which is not repairable, or one that would cost more to repair t...
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